Investing.com - Financial Markets Worldwide

GBP/JPY Rebounds, But Stays In A Downtrend

Published 03/19/2020, 07:44 AM
Updated 07/09/2023, 06:31 AM
GBP/JPY
-0.01%

GBP/JPY traded higher today, after hitting support at 124.00 yesterday. Overall, the price structure remains of lower highs and lower lows below the downtrend line drawn from the high of February 26th, and thus, even if the recovery continues for a while more, as long as the rate stays below that line, we would consider the near-term outlook to be negative.

As we already noted, the rebound may continue for a while more and perhaps challenge the 128.80 zone, marked by the inside swing lows of Monday and Tuesday. The bears could take charge from near that area and perhaps dive for another test at the 124.00 hurdle. If they don’t stop there this time around, we could see them aiming for the “flash crash” low of October 7th, 2016, the break of which may extend the slide towards the low of July 26th, 2012, at around 120.80.

Looking at our short-term oscillators, we see that the RSI has rebounded and just exited its below-30 zone, while the MACD, although below both its zero and trigger lines, shows signs of bottoming as well. These indicators suggest that the downside momentum is slowing, which corroborates our view for some further recovery before the bears take the reins again.

In order to start examining the case of a trend reversal, we would like to see a clear break above 131.30, a resistance marked by Tuesday’s high. Such a break may also drive the rate above the downtrend line and could initially aim for the 134.20 obstacle, defined as a resistance by the high of March 13th. Another break, above 134.20, could pave the way towards the pea of March 10th, at around 137.20.
GBP/JPY 4-hour chart technical analysis

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.